Plastic Exports Up 16 Per Cent To $940 M In 02-03

Mumbai, Sept 28: | Updated: Sep 29 2003, 05:30am hrs

Indias total plastic exports during the year 2002-03 were placed at $940 million as against $802.2 million during the same period last year, thereby recording a positive growth of around over 16 per cent. And it is expected to touch over $1,104 million during 2003-04 in the current 2003-04 year.

However, the raw material exports have taken a quantum jump registering a growth of over 90 per cent during the period under review. This is due to increasing plastic raw material from China and it has become the largest trading partner for the plastic sector.

Even, the countries like Turkey and Italy have come up high, as these countries which add value to plastic raw materials and export huge volumes round the globe.

While addressing the gathering at export award function, V Ramkrishnan, chairman, Plastics Export Promotion Council (Plexconcil), said, The local plastic processors have immense potential for exports. Indias exports have shown a growth rate in a range of 15-20 per cent during past, inspite of the worldwide recessionary trend.

However, industry has taken lessons from the Chinese to make ourselves more in servicing the global markets. As their scales of production are very high and it is the economies of scale in production that contributes to their being highly competitive. Chinese highly flexible labour laws and a highly committed labour force with reqal high levels of productivity are important factors that contribute to their success.

SB Mookherjee, minister of state for commerce and industry, said, India-China bilateral trade is of relevance toady. Indian exports to china are nearly $2 billion with a record growth of 106 per cent. But this is only a fraction of chinas total imports of $17.4 billion in 2002.

There has been an exponential growth in plastic exports to China in the last few years, with exports expanding from $7.7 million in 1999, to $262 million in year 2002.

Mr Ramakrishnan said, In the current year, council has planned is to send a delegation to the US to explore supplies of custom-made plastic components to original equipment manufactures. Such supplies to the US market as per estimates is around $7 billion.

Hence, looking at the demand trend, the council has plans to target industry segments like the automotive industry, the communications and the electronics industry, the white goods industry and any other industry that has good scope for increase in demand.

The first phase of the study has largely been completed by the council, and it is in the further process of making the proposal for the second phase based on the study.